Trade CFDs on bonds online

  • Instrument
  • Buy
  • Sell

What are Bonds?

Bonds are loans that investors offer to borrowers (usually governments, municipalities, or corporations).

 

The two parts agree on an end date when the principal (the face value) of these loans needs to be paid, as well as the terms of interest rates.

 

The purpose of bonds is for the issuers to raise capital for various purposes: governments and municipalities launch bonds to fund infrastructure, educational or other general-public projects, and corporations to expand their businesses, R&D purposes and other.

 

Bonds can be classified by their maturity dates:

from 1 year to 3 years – short-term

from 3 years to 10 or more years - medium-term

longer periods

How to trade bonds: CFDs and regular bonds investing

CFDs are a type of financial trading that lets people trade the price movements of various assets, including bonds. The important thing regarding CFDs is that you don’t have to physically own the asset to trade it.

 

For example, if you would think a bond will increase in price, you could take a long position and place a BUY order. If you would think prices will go down, you could take a short position and place a SELL order.

 

Outside CFDs, you can opt to invest in bonds as a bondholder. Since governments, corporations, or municipalities issue these instruments to finance different projects or to expand their businesses, the value of interest payments you receive depends on many various factors.

Trading CFDs on bonds

Trade the bond price movements over the short and medium-term

 

Trading with Leverage increases your buying power and lets you open positions with less capital, but also with increased risks

 

Investing in bonds

Hold bonds over the long term for interest payments

 

Pay for the entire value of your position

Want to see what CFDs on bonds you can trade on CAPEX.com? Check out our collection!

Factors influencing trading CFDs on bonds

Interest Rates

For government bonds, every time a central bank modifies interest rates, it impacts the valuations for bonds

Economic or political developments

Investors looking to anticipate the price direction of bonds closely monitor the latest financial and political developments

Inflation & GDP releases

Inflation and GDP reports also affect bonds prices, as these are directly correlated to the health of the economy

Discover CFDs trading with CAPEX.com! Visit our CAPEX Academy, full of educational materials and resources designed to help you develop suitable trading strategies and gain valuable market information on bonds, shares, Forex and other assets!

 

How to trade CFDs on Bonds on CAPEX.com

You can open a position of CFDs on Bonds with CAPEX.com through the device of your choice, be it a smartphone, PC, or tablet.

It’s straightforward:

1

Log in to your account or create account

2

Go to the Bonds section and choose your favorite instrument

3

Set your trade size

4

Choose direction (Buy or Sell) based on your assessment of the influencing factors

5

Place your trade!

You find it hard to keep a close eye on your trades all the time? Advanced tools are available, especially for this: you can set automatic orders like Take Profit and Stop Loss to manage multiple trades and keep your risks under control!

Trading Conditions for CFDs on Bonds

Attractive Swaps
CFDs on EU, USA, UK bonds
Leverage 1:100
Tight spreads and zero commissions**

* Please note that CAPEX.com, operated by KW Investments Ltd, is not liable for any fees or hidden costs charged by your bank or online payment provider.
**For any withdrawable amount lower than 100USD/EUR/GBP or any other currency equivalent, charges/fees will be covered by the client.  (Beneficiary will pay the costs – BEN).

Trading Times

 

Keep in mind that trading hours may vary based on the specifics of every instrument.
For more details, check our dedicated Trading Conditions.